market clearing

(redirected from Clearing, Market)

Market clearing

Total demand for loans by borrowers equals total supply of loans from lenders. The market, any market, clears at the equilibrium rate of interest or price.

Market Clearing

A situation in which the demand for loans equals the supply of loans. That is, borrowers want to borrow the same amount of money that lenders are willing to lend. During a market clearing, the equilibrium rate of interest prevails, which ideally means that the cost of borrowing is neither excessively high nor low.

market clearing

a MARKET situation where the DEMAND for a product exactly matches SUPPLY of the product, leaving neither excess demand nor excess supply. See EQUILIBRIUM MARKET PRICE.
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